Adviser surveys

Since our last survey in November 2022 the sentiment of advisers’ clients has improved overall. The proportion of clients who are bearish has fallen from 68% to 44%, so no longer a majority, and this is matched by the 44% who are now neutral, up from 26% in November. This indicates some wariness among clients about predicting the future direction of markets following the volatility of the last few years.

In November, 53% of advisers reported that some clients had adjusted their plans due to the cost of living crisis, this has now risen to 89%.

90% of advisers said that they have had conversations with clients about long-term investing v cash deposits (given current interest rates).

57% of advisers think that the development of AI technology such as ChatGPT represents an opportunity for their business whilst 43% see this as a potential threat.

73% of advisers anticipate incorporating AI based tech in their advice process in some way in the future, with 51% anticipating this happening in the next 5 years (8% in the next year).    

Firms have until July 2023 to implement the new rules under the Consumer Duty. Nearly 60% of advisers feel that the fair value outcome will put pressure on the ongoing charging model.

45% expect higher disruption due to technological advances, an increase from 30% in November 2022.

21% are considering using private market investment solutions for clients, an increase from 12% in May 2022.